Nikola details 'false and misleading' information of short seller’s fraud claims

  • Shares of Nikola remained in the red for the third session in a row during premarket trading Monday.
  • In a statement Monday, the company said there were "dozens" of inaccurate allegations in the report, outlining a handful of specific examples.
  • The accusations came days after General Motors said it is taking an 11% stake in Nikola.

Shares of Nikola remained in the red for the third session in a row during premarket trading Monday as the electric vehicle startup attempted to refute what it calls a "false and misleading" report last week by short-selling firm Hindenburg Research.

In a statement Monday, the company said there were "dozens" of inaccurate allegations in the report, outlining a handful of specific examples.

Nikola shares were trading down about 9% to under $30. The stock closed Friday at $32.13, bringing its market capitalization to $11.6 billion after a 14.5% drop.

Hindenburg accused Nikola's founder, Trevor Milton, of making false statements about the company's technology in order to grow and partner with top automakers.

Hindenburg said it has evidence including phone call recordings and text messages containing false statements and that the company staged a video showing a truck that appeared to be functional. The research firm said the truck was rather "towed to the top of a hill on a remote stretch of road and simply filmed it rolling down the hill."

The accusations came days after General Motors said it is taking an 11% stake in Nikola. GM said it planned to produce Nikola's marquee hydrogen fuel cell electric pickup truck the Badger by the end of 2022. GM shares gained 1% to end Friday at $30.46.

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